Stop-loss triggered; RHB Research has initiated short positions on HSI futures.
The HSIF’s selling pressure persisted last Friday as it fell lower to close at 19,391 points – breaching below the 19,455-point immediate support-turned-resistance. The index opened at 19,488 points last Friday, printing the day’s high of 19,562 points only to reverse direction to hit the day’s low of 19,246 points before rebounding strongly towards the close. In the evening session, it fell another 122 points and last traded at 19,269 points. The continuation of bearish candlesticks suggests that the downward movement is getting firmer, with the index eyeing to fall towards the 19,063-point immediate support. Since the 19,455-point strong support has been breached, the index is set for a downtrend movement. As such, the research house is shifting to a negative trading bias.
The research house closed out its long positions initiated at 20,143 points, ie the close of 25 Aug’s extended session, after the 19,455-point stop-loss was triggered. Conversely, we initiate short positions at the closing level of 2 Sep. To mitigate the trading risks, the initial stop-loss is placed at 20,200 points.
The immediate support is revised to 19,063 points, or the low of 10 May, followed by 18,134 points, or 16 March’s low.
Towards the upside, the immediate resistance is set at 19,455 points – 3 August’s low, followed by 20,200 points.
